Log on to...
Home > Corporate > Custody > Custody of Trust Scheme

Custody of Trust Scheme

Overview
The Custody of Trust Schemeis provided by ABC to trust companies in accordance with relevant laws and regulations. Under the custody agreement executed with the trust company, ABC provides services, such as custody of assets, funds clearing, accounting, investment supervision and information disclosure.

The trust schemes under the custody of ABC include: securities investment trust scheme and non-securities investment trust scheme based on the investment fields; and collective investment trust schemes and single investment trust schemes based on the number of principals.

Features
By introducing the third-party custodian (usually a bank) into the trust scheme management, this service enables the division between investment management and asset safekeeping, facilitates the protection of assets under management and the supervision over investment activities of the securities company, therefore safeguarding the interest of customers. The custodian is responsible for safekeeping of assets, accounting, funds clearing, investment supervision and information disclosure.

ABC has an abundance of expertise and a talented team for custody of trust schemes. ABC's custody services have the following features:
1.Full scope of qualifications, customized custody services, reliable system support, sound internal control for custody services, comprehensive information and consulting services; 
2. Separated bank account under the name of the trust company and securities account under the "full name of the trust company plus the trust scheme name", to keep various trust assets safe and to ensure the separation between the management of trust assets and the holding of property (including property rights); 
3. Supervision and verification of the trust company's use of trust assets, valuation of the trust assets, and information disclosure to effectively control compliance risks; 
4. In the case of loan-type collective investment trusts, the proceeds will be directly paid to the products or service providers to ensure the loan proceeds are used for designated purposes only.

Procedures
1. ABC and the trust company sign a custody agreement. 
2. The Custody Department of ABC or the branch/office of ABC as authorized by the department opens the deposit account, securities account and other accounts required for investment activities for the trust company in accordance with relevant regulations. 
3. ABC makes funds clearing upon receiving valid instructions from the trust company. 
4. ABC sets separate accounting books for the trust funds and makes accounting based on relevant accounting policies and the custody contract. 
5. ABC supervises and checks the trust company's use of trust assets, valuation of the trust assets, and information disclosure in accordance with applicable laws and regulations and the custody contract.
6. ABC regularly issues the trust assets custody reports to the trust company. 
7. ABC reviews the clearing reports submitted by the trust company upon termination of the trust scheme, distributes the trust property to the beneficiary based on the instruction of the trust company, and helps the trust company close the custody account.

Application Channels
ABC Custody Department and ABC branches authorized by the department.

Tips 
As a custodian of the trust schemes, ABC performs the custodian obligations under the custody contract but does not warrant or guarantee the safety of or any prospective returns on the principal.

Note: Please contact your local branch for detailed information about the service.

Customer Service Center : 95599

Outlet

Contact Us| Statement Copyright©AGRICULTURAL BANK OF CHINA (ABC) All Rights Reserved